Chance of Fed Printing More Money Jumps to 60%

Chances that the Federal Reserve will launch a third round of money printing have risen slightly over the past month to 60%, according to a Reuters poll that also showed economists lowering economic growth expectations for this year and next.

Most forecasters have turned more pessimistic on the economy, despite recent, modestly better news on retail sales, payrolls and the battered housing market. The trimmed quarterly growth forecasts for a third straight month.

The latest findings are based on a survey of 17 of the Wall Street primary dealers who deal directly with the Fed, as well as an additional 44 economists in the monthly Reuters Poll.